Understanding Mortgages: A Home Loan Guide 🏡

A mortgage is a type of loan for buying a home.<br />How does it work?<br />According to Business Insider a company lends money, and its pay back the lender in monthly installments for a predetermined amount of time.<br />A conventional mortgage requires a certain credit score, down payment, and debt-to-income ratio.<br />A government-backed loan has more lenient requirements.<br />A fixed-rate mortgage, which locks in the rate for the entire life of the loan.<br />An adjustable-rate mortgage, which offers the same rate for the first few years, then changes periodically.<br />Borrowers can receive a mortgage by getting your finances in order, shopping around for lenders, and applying for approval.